The Truth About Short Sales

I thought I’d take a moment to talk about short sales.Most of us have heard this term.Some of us know what it means.Many people are in this situation.There is a lot of misinformation out there about short sales.Basically, a short sale is when a homeowner owes more for their property than it is worth and needs to sell their home.You do not need to be behind on your mortgage to do a short sale.If you find yourself in this situation, the first thing to do is contact your lender.They will assist you with the process and tell you what steps need to be taken.The second thing to do is find a real estate agent with short sale expertise. Will a short sale hurt your credit score? YES!It is better than a foreclosure?YES!If you have a Fannie Mae or Freddie Mac mortgage, today’s guidelines for obtaining a mortgage after a short sale are you must wait 2 years and put 20% down or 4 years and put 10% down.These are guidelines and do not guarantee your ability to obtain a mortgage.The mortgage business is changing daily, so the guidelines in place today will probably be different in the coming years.Needless to say, before doing a short sale be sure it is absolutely necessary.It’s not the “quick fix” many people think it is.There are serious consequences after experiencing a short sale.

Recent Posts

Disclaimer: Trulia, Inc. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. Trulia, Inc. takes no responsibility for the content in these profiles, that are written by the members of this community.